How Do You Determine Whether to Use the Z or T

question 162

Essay

How do you determine whether to use the z or t distribution in computing the margin of error, $E = z \alpha / 2 \cdot \frac { \sigma } { \sqrt { n } } \text { or } E = t _ { \alpha / 2 } \cdot \frac { s } { \sqrt { n } } ?$

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Definitions:

Willingness to Pay

The maximum amount an individual is prepared to spend for a good or service, reflecting the value they derive from it.

Baseball Game Ticket

A document or electronic card that grants the holder admission to a baseball game event.

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting their valuation of it.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good or service and the actual price they do pay.